Rank Group Cuts Staff to Offset UK Gambling Tax Impact

Rank Group Plc, owner of Grosvenor Casinos, Mecca Bingo, and Spain’s Enracha Casinos, has confirmed a round of staff reductions as it adjusts to the UK government’s increased Remote Gaming Duty (RGD). The duty, which rose from 21% to 40% in April 2026 following the 2025 Autumn Budget, has prompted operators to implement cost-saving measures across their businesses. While the company has not disclosed exact numbers, the reductions are part of wider efforts to protect profitability and maintain growth.

Richard Harris, now permanent CEO, highlighted that the RGD increase presented “significant cost and taxation headwinds,” and Rank has sought to offset this through headcount reductions, lower marketing spend, and supplier cost optimization. Harris added, “Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year.”

Financial Performance Amid Regulatory Pressure

Despite the tax pressures, Rank Group anticipates record net gaming revenue (NGR) of £834.1 million for the year ending June 30, 2026, surpassing 2025 figures by 6%. The firm’s online division performed strongly, with like-for-like NGR up 12% in the fourth quarter, while Grosvenor Casinos posted £397.3 million for the year and Mecca Bingo recorded £143.0 million. Spain’s Enracha Casinos achieved £45.3 million, up 7% year-on-year, although it faced a €7.1 million payment fraud incident in December 2025.

The company has also reported that gaming machine revenues at Grosvenor grew 12% in the fourth quarter, bolstered by the addition of over 850 new machines in the first half of the year, following a UK legislative change allowing more on-site gaming terminals, reports City AM.

Rank Group is also addressing compliance matters with the UK Gambling Commission. The company has submitted a £5 million settlement proposal in lieu of a formal financial penalty related to historical regulatory failings at Grosvenor Casinos between November 2024 and May 2025. The Commission is said to be “minded to accept the settlement proposal,” with formal documentation expected to follow.

The settlement, coupled with internal cost efficiencies and strategic measures, aims to allow Rank to navigate regulatory pressures while sustaining investments in digital platforms and customer loyalty programs. The firm has confirmed that promotional offers and player incentives will continue to support user engagement.

Strategic Measures and Outlook

Rank has pursued additional initiatives to maintain operational resilience, including a review of corporate functions and careful management of marketing investments. The company expects underlying operating profit for the year to reach at least £76 million, exceeding prior market projections of £63.7 million.

Harris reaffirmed the medium-term target of achieving £100 million in operating profit, underscoring that the company’s actions, including staff reductions, were intended to strengthen operational efficiency and shareholder value rather than simply respond to tax pressures.

The company is set to publish its full preliminary results for the 2025/26 financial year later this summer, offering a clearer picture of how these strategies are translating into financial performance.